When the Output of Some Units Can Be Used as Inputs

question 61

Multiple Choice

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created.

• A) value webs
• B) value chains
• C) synergies
• D) core competencies
• E) benchmarks

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Definitions:

Average Tax Rate

The ratio of total taxes paid to total income, representing the percentage of income paid in taxes.

Capital Gains

The profit earned from the sale of an asset that has increased in value over the holding period, subject to taxation.

Non-Eligible Dividends

Dividends paid from income that has not been taxed at the corporate level, often subject to a different tax rate on the recipient's end.

Operating Cash Flow

Cash generated by a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.